WICHITA, Kan. — Drawing the idea from a Wisconsin linkup three years ago and representing a Kansas first, the $50 million Credit Union of Dodge City has opened a storefront branch to offer alternative payday loans.

“As a member of the REAL Solutions group, we felt we could serve a special need in our community by operating a separate branch to handle the business,” explained Raymond Stroud, president /CEO, referring to the underserved product programming pursued across the U.S. by the National Credit Union Foundation.

The Dodge City CU, located in a western Kansas community of 30,000 and which has 15 payday outlets, debuted its new Instant Cash Plus facility in a vacant downtown appliance store a month ago and is planning a grand opening celebration on May 7.

“Let me tell you we got our inspiration from that Goodwill facility operated by Prospera in Wisconsin,” said Stroud, citing a now three-year-old branch linkup of Goodwill Industries and Prospera CU of Appleton.

Stroud said the Instant Cash branch, which offers $500 loans at 10%, rather than the 15% prevailing fee, has already brought in $8,000 in loans and is on track to make a profit.

“We're pleased so far with the reception and we're projecting lending out $60,000 in a year and a half,” said Stroud who took part here last week in the annual conference of the Kansas Credit Union Association.

Stroud said the CU's payday branch officially opened March 17 will be remodeled in coming months to accommodate financial education classrooms. In choosing the brand, Instant Cash Plus, Stroud explained that the “plus” stands for “plus a credit union.”

Regarding Prospera in Wisconsin, the Appleton CU opened its GoodMoney service in 2005 with $1 million in loans and since has offered it to other CUs on a turnkey basis.

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